Question: The following accounts showed an increase or a decrease from the comparative balance sheet. Explain which account will be added to net income and which

The following accounts showed an increase or a decrease from the comparative balance sheet. Explain which account will be added to net income and which will be subtracted in calculating net cash flows for operating activities using the indirect method.

a. Accounts Receivable: Decrease
b. Merchandise Inventory: Increase
c. Mortgage Payable: Decrease
d. Accounts Payable: Increase

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